A Report on Finances
UTILIZING the entire 1958 Alumni Fund net of $404,837 and an additional $367,163 from the Capital Gifts Campaign, the College met its operating expenses for the fiscal year 1957-58 and posted a balance of $39,608 to be added to unrestricted current funds. With the knowledge that the 1958 Alumni Fund would be conducted on a limited basis, the Capital Gifts Campaign had planned from the outset to provide whatever sum was necessary to prevent an operating deficit for the year. The combined total from the two sources was $772,000, compared with $720,000 provided by the Alumni Fund alone the year before.
Total income before the application of the combined $772,000 amounted to $9,774,327, while the expense figure for the year was $10,506,718. Both the income and expense totals were record figures for the College, and would have been such even without the inclusion for the first time of $419,196 of departmental research funds on both the income and expense sides.
The details of income and expense, as reported to the Dartmouth Trustees by Treasurer John F. Meek '33, are presented in the box on this page, with comparable figures for the preceding year also shown. Total educational and general income of $6,583,644, before transfers from reserves, was 1993,875 or 18% greater than in 1956-57. The increase resulted largely from a rise in both tuition and endowment income. A tuition increase from $980 to $1170, effective September 1957, produced $515,416 more income from student fees. Gross income of $2,441,626 from endowment, after deduction of investment management and related charges, exceeded that of 1956-57 by $237,114, or approximately 11%, as a result of the receipt of additional funds for endowment. After the transfer of class memorial fund income to the Alumni Fund, the addition of $358,957 to the principal of various endowment funds, the transfer of $136,983 to scholarship, loan and other restricted reserves (partially offset by withdrawals of $41,296), and other transfers, annuities, and deferrals made in accordance with the stipulations of donors, endowment income utilized during the year amounted to $1,655,501, or $93,418 more than the year before.
For the year, student fees produced 47.7% of Dartmouth's income, net endowment 22.5%, gifts for current use 10.8%, the Alumni Fund and Capital Gifts Campaign 10.5%, and other sources 8.5%.
On the expense side, the educational and general total of $7,256,439 was an increase of $1,009,284 or 16% over the comparable figure for 1956-57. Instructional expenditure increased $321,589 or 13%; libraries $49,909 or 14%; administration $101,505 or 15%; plant operation $68,956 or 8%; scholarships $158,613 or 25%; health service $33,795 or 15%; and miscellaneous $134,287 or 21%.
For auxiliary activities (athletics, outing properties, Dining Association, golf course, etc.) total expense exceeded income by $246,993, compared with a loss of $220,730 the year before. The DCAC and the Hanover Country Club accounted for most of the deficit.
Instruction and research accounted for 43.9% of the year's expense, the libraries 5.3%, plant operation 13.1%, scholarships 10.7%, administration 10.1%, health service 3-4%, auxiliary activities (net) 3.3%, and miscellaneous 10.2%.
As of June 30, 1958, the total of endowment funds and funds functioning as endowment was $57,505,736, but this ineluded $5,079,885 of funds reserved for plant construction. Excluding the latter, total endowment was $52,425,851, representing a gain of $6,410,671 over the preceding year.
Income and Expense, 1957-58 1956-57 INCOME 1957-58 $2,990,856.32 Student Fees $ 3,506,272.00 1,562,082.68 Net Endowment and Similar Funds Income 1,655,500.72 532,741.50 Net Gifts for Current Use 795,976.92 64,045.53 Contract Research 68,734.69 98,959.64 Land and Buildings 124,758.81 28,363.42 Health Service 30,437.23 312,720.03 Miscellaneous 401,963.33 $5,589,769.12 $ 6,583,643.70 5,000.00 Deduct: Transfer to Reserves 3,000.00 189,270.47 Add: From Reserves and Endowment Funds 190,397.00 $5,774,039.59 NET EDUCATIONAL AND GENERAL $ 6,771,040.70 2,529,574.92 Auxiliary Activities 3,003,286.39 $8,303,614.51 TOTAL INCOME Before Alumni Fund $ 9,774,327.09 EXPENSE $2,829,822.83 Instructional and Research $ 3,292,042.64 346,527.68 Libraries 396,436.61 663,539.43 Administration 765,043.81 914,597.65 Plant Operation and Maintenance 983,553.86 643,840.00 Scholarships 802,453.96 218,915.41 Health Service 252,709.72 629,911.99 Miscellaneous 764,198.83 $6,247,154.99 TOTAL EDUCATIONAL AND GENERAL $ 7,256,439.43 2,750,304.67 Auxiliary Activities 3,250,278.92 $8,997,459.66 TOTAL EXPENSE $10,506,718.35 $ 693,845.15 Deficit Before Alumni Fund $ 732,391.26 720,000.00 Applied from Alumni Fund 404,836.53 Applied from Capital Gifts Campaign 367,163.47 $ 26,154.85 BALANCE added to Unrestricted Current Fund $ 39,608.74
Exclusive of the funds reserved for plant construction, Dartmouth's investments on June 30 totaled $52,143,509 at book value, and consisted of securities with a book value of $44,018,080 and a market value of $55,459,379, plus $8,125,429 book value of mortgages, real estate, and miscellaneous investments. Of the securities, 38.8% were in bonds, 59.4% in common stocks, and 1.8% in preferred and guaranteed stocks. A year earlier the distribution was 33.7%, 64.0% and 2.3%.
The net return for the year, valuing securities at market and other investments at book, was 4.13%. On securities alone, the return at average market values was 4.08% as against 3.99% the year before.
The grand total of Dartmouth College assets on June 30, 1958 was $71,335,549, representing an increase for the year of $11,336,069. The asset total included $57,505,736 in endowment and similar funds, $11,074,815 in plant, and $3,207,949 in current assets. The net book value of the plant, including dormitories and other properties carried as investments of endowment funds, was actually $14,304,413.
